Posts Tagged ‘social security’

When these cute little kids get old enough to understand – who is going to explain to them that they were born owing hundred of thousands of dollars to faceless bondholders around the world?

Americans love their children. It makes no difference whether we are liberal, conservative, progressive, independent, or even politically sterile – our children are our hopes and dreams projecting our lineage into the future. At this moment, their future is in jeopardy and our generation has the moral responsibility and imperative to reverse that.

We see a future for our kids on the horizon that we have to change before it arrives. Our entitlement programs – Social Security, Medicare, and Medicaid – are spiraling into insolvency. The Federal Budget Deficit has tripled in two years. Our government is mortgaging our kids’ future earnings at an alarming rate and shows no signs of exerting any sanity.

Combining the liabilities of the National Debt at over $13 Trillion at present and the unfunded liabilities of the above mentioned entitlement programs; every baby born today is on the hook for just under $400,000. That, of course, includes every living American of any age. Now we have piled the Health Care Bill on top of all the previous government commitments to entitlement largesse and the long term costs of that are not being truly enunciated. Only time will tell if it will be the final nail in the destruction of our nation’s fiscal stability.

We can no longer sit in front of the TV with 500 channels of sports, porn, and sappy sit-coms and ignore the peril in which we have placed our children’s future. We must awake and realize that piling up unmanageable debt and then dying to escape repayment is nothing short of criminal.

We have to stand up and demand the drastic reform of the entitlement monster before it destroys the opportunity our kids deserve. As individuals we must be strong enough to swear that we will not enroll in any of these programs unless fate and bad fortune leave them as the only way to preserve our lives. We have to get back to the concept that a government handout is not a right – but an insult, and an affront to our dignity. Sure you say you paid in and want your benefits. Too bad the government stole every penny of what you contributed and left the funds empty – it’s GONE! The people we elected over the past half century stole every penny! It is our burden and responsibility to realize the dough is gone and we have to take the hit – not our kids.

Watch that cute clip again and think hard on whether you want to be part of the problem, or part of the solution. Your little loved ones need your involvement now.

Look what Patty Murray and the Democrats think is good for America – deficits that plunge us towards bankruptcy!

Whose children and grandchildren will end up paying for this catastrophe?

Unsustainable Federal Budget Deficits

Murray rose from a faculty position, fully baked in the hothouse of liberal PC groupthink, to US Senator in a few short years; swept into the office in “the year of the woman,” 1992. She means well, but her voting record is does not help America’s future.

The Democratic Party’s belief in big government solutions to every problem has created legislation that has proven counterproductive, expensive, harmful, and unsustainable for 77 years. Patty Murray has been a myopic cheerleader for such buffoonery all her adult life. During the 110th Congress, her voting record was 97.5% along party lines; a tie for the very top spot with Richard Durban of Illinois. That is not legislating – it is rubber stamping anything the party tells her to vote for.

Of course, Murray voted for Obamacare and the unintended consequences are now emerging from the closet like Willard’s rats. Contrary to the President’s solemn promise, more than half of the presently insured will lose the coverage they prefer within 3 years. Now she is tuning up to vote for Cap & Trade which will burden job creating businesses with punitive energy costs during the depths of a severe recession.

Murray is blind to the fact that as the future unfolds, far too many have claims upon the earnings of far too few. The massive entitlement programs we already have are nearly bankrupt. Her knee jerk support for yet more government control and spending can only be explained by her typical liberal preoccupation with the present time. She knows not about history, cares not about reality, and sees not the future. Her only vision is limited to her slavish devotion to yet more big government solutions she mistakenly “feels” would make things better. “Reasoning” out the costs and unintended consequences is obviously beyond her capacity.

The future of our nation depends on whether the march of the nanny state and its exploding debt can be arrested and rolled back. If not, it will destroy liberty as we have known it and condemn our children to serfdom. Murray is a major enabler of our potential future under Big Brother. Leaving her in office for 6 more years only exacerbates the possibility of the day when it will be too late to stop it. We in Washington have to elect a different Senator.

Murray went to the Senate as “The Mom in Tennis Shoes” but quickly turned them into a rubber stamp. Her hardwired base will back her forever since they pay no more attention to history and future consequences than she does. It is up to those of us who can see the long term damage of liberal policies, spending, entitlements, and social engineering to send Murray back to a college classroom. There she can damage only a few young minds at a time instead of continuing to help push America off the precipice of dependency, indebtedness and international impotence. She must be fired in November!

Here is a cute description of Murray’s propensity for earmarks, followed by links to two great candidates who should be seriously considered to replace her:

Social security is nearing its moment of truth. If this massive time bomb is not drastically modified before the fuse gets too short, we may well have a violent backlash. Say “Greece”. Future generations will realize they are being taxed beyond their capacity to pay to support growing numbers of retirees with Social Security benefits as they live well into their 80s and 90s. The graph below demonstrates the decay of Social Security deficit projections in just the past year. Where will that money come from?

CBO Social Security Deficits

There are three options:

1. Do nothing, allowing the future to unfold leading to national financial ruin.
2. Kick the can along to the next generation with tax increases and band aid fixes.
3. Fix it now- forever- while the popular inertia is behind the idea.

1 and 2 are already discredited having been practiced over the past 50 years. Buying votes from senior citizens over the past 3 generations and fearing their retribution every other November has brought the system to the breaking point. The third choice is the only realistic path and we may just be witnessing the grass roots support to get it done.

Social Security was passed as a self sustaining government run plan to provide a minimum level of benefits to retirees, many of whom were entering old age destitute from enduring the Great Depression. Over the years it was larded with additional benefits, recipients, and the billions collected from payers were squandered on present spending. The money was replaced with government IOUs. The system just went into the red and those IOUs must be covered through additional taxes, deficits, and borrowing.

One way to save the system would be to ratchet the retirement age up over time to the equivalent of what it was in 1935. If it was a fair age of eligibility then, it is fair now. In 1935 life expectancy was 61.7 and eligibility began at 65. Today the average is 77.8. Using the original formula, benefits should start at just under 82 years of age. Although many seniors would be able to work well into their 70s, expecting them to do so until 82 is not realistic.

An alternative would be to allow anyone to retire at any age but be eligible for only monthly benefits based on lifetime contributions, and accrued interest divided by the number of months actuarial tables show as additional lifespan. These benefits could be paid until death based on this formula since half the recipients will pass on prior, and half after the expected life years point arrives. The longer one works before retirement, the higher their benefits would be.

Neither of these ideas will be palatable to seniors, but something like this has to be done to save our young and unborn from the consequences of an overly generous and unsustainable retirement program. The follow-on benefit will be that a majority of folks approaching retirement age will be highly motivated to save and invest on their own behalf well ahead of reaching their golden years.

These are just a couple ideas from which to start discussion. However no such dialogue can possibly start; and this huge problem cannot ever be solved without a tectonic change of leadership in Washington. There may be a loophole in history forming right now that could lead to such a move. The growing rage at the grass roots level, if coordinated and successful, could well bring a flock of principled and courageous new legislators to Congress in November. They would join the remaining battle scarred incumbents who after fighting for their political lives may indeed be ready to do the right things.

Let us hope the power and inertia of the tea party movement does not metastasize into a third party fiasco, but instead elevates strong, fiscally responsible candidates from both parties into office. There are good Democrats in the field who are running far to the right of the present administration, understanding that courageously breaking with past party orthodoxy is the only hope of being elected. There are mediocre Republicans presently in office who will be broomed out as happened to Bob Bennett of Utah.

It is our responsibility as voting citizens to elevate to office those who swear to address this entitlement Tsunami immediately for the benefit of our nation and its future generations.

In 1932, FDR referred to “the forgotten man at the bottom of the economic pyramid”, promising “a real economic remedy”; provided of course by government. The concept of “The Forgotten Man’’ is always distorted by some to emphasize their yearning to help the downtrodden. To them, the drug addict in the ally, the slacker on the corner, the single mom with no skills and 4 kids, the dropout on food stamps, or the unemployed who refuse to take a less than ideal job are the “Forgotten Man”.

These people pay much attention to those in some sort of “need”. It matters not a whit whether that “need” is caused by truly tragic circumstances outside the individual’s control, or is the direct fault of his or her own actions or lack thereof. A disabled veteran, a quadriplegic accident victim, a human born handicapped either physically or mentally – those people are in need due to circumstances they had no power to avoid. They deserve support, and programs are available to provide it. On the other hand, one who squandered the opportunity of a free public education, chose crime over honest work, or found means of support by sponging off society has done so out of choice – not necessity. Liberals do not differentiate between the two types.

This piece was recorded 40 years ago, but “welfare” is only a small piece in the puzzle. This is not the “Forgotten man” – he is more like one “Kept Man” out of growing millions:

The original theory was postulated in the late 1800s by Professor William Graham Sumner of Yale. Bear with me here – this is the language of an economist.

“As soon as A observes something which to him seems to be wrong, from which X is suffering, A talks it over with B; and A and B propose to get a law passed to remedy the evil and help X. Their law always proposes to determine what A, B, and C shall do for X. What was wrong was the law, and the indenturing of C to the cause. C was the forgotten man, the man who paid, “the man who was never thought of.”

Sumner’s Forgotten Man is the hard working small businessman, truck driver, waitress, construction worker, or software developer who is taxed to support the ever expanding legions of those in “need” – AKA “X”.

Sumner never imagined that over a century later, government would also be funding counterproductive boondoggles like the Departments of Education, Commerce, Energy, Fannie May, Freddie Mac, food stamps, or HUD. He could not have foreseen the legalizing of Ponzi schemes in the form of Social Security, Medicare, and Medicaid. Of course C is facing ever increasing taxes to fund these unsustainable programs also as they fast sink into humongous deficits.

This situation has moved C from the present into the future. C is now made up of young children not old enough to contemplate their future or vote on its eventual stability. Millions upon millions of those yet unborn are to emerge into adulthood as “C”s. Meanwhile the number of “X”s is increasing exponentially with the retirement of the Boomers and the irresponsible actions of the Obama Administration.

This impending intergenerational theft has been orchestrated over the past 80+ years by administrations of both political parties. It is criminal malfeasance against future Americans who cannot defend themselves. A and B must be purged from government. X must be made to expect and accept less. The Ponzi schemes must be made sustainable, and government must do less with less.

Think hard about the young ones in your family, now and in the future. They do not know, do not yet understand, and cannot demand that you take action. Your vote is the only thing standing between those kids and a future of misery. Use it wisely.

President Obama may indeed prove to be the great instigator of “change we can believe in” in spite of himself. History may well remember him as the president who caused a massive shift in American history; sparking another century of American exceptionalism, global leadership, and economic prosperity. Such change will however unfold quite the opposite of Obama’s own vision.

For three generations the US has slid down the path of bigger government, expanding social programs, and unsustainable entitlement expansions. The nation has seen year after year of irresponsible spending, regulatory growth, ballooning bureaucracies, earmark projects, and misallocation of resources. Combined, these various headless monsters of government largess and nanny state tax and control policies have pushed our future to the edge of the abyss. The spending and resulting debt obligations are about to destroy our future.

Change is certainly coming, and soon. The question is; will it be a total national financial collapse, or will it be responsible change forged by new leaders; smart, strong, and principled enough to initiate vital changes through law in a peaceful manner.

President Obama is burning through borrowed trillions by the carload. He is supported in this by a compliant Congress and a cabal of inner circle sycophants with no experience in the private sector. They try to emulate FDR, but overlook the fact that his policies prolonged the Great Depression. Meanwhile Obama squanders his political capital at an alarming rate. Stimulus, Omnibus, cap & trade, health care, civilian trials for terrorists, and gays in the military are draining the confidence and goodwill with which he took office. His recent emasculation of US Nuclear Response Doctrine has weakened our deterrent capabilities.

In the interim, a giant has begun to stir. The 50% of Americans who still pay income taxes are becoming alarmed. Millions of families with little ones are awakening to the fact that if something is not done to reverse this course; their children will reach adulthood amongst a mountain of debt and unfunded liabilities. Gen X and Gen Y are realizing that the Boomers and the Greatest Generation have expropriated trillions of their future earnings. Investors are hoarding gold instead of buying into businesses. Corporations don’t expand fearing the unknowns beyond the horizon like tax rates, carbon regulation, and health care mandates. Consumers keep their wallets shut and save to pay their mortgages or to have something in case of a job loss.

The choice between fiscal Armageddon and a dawning day of economic prosperity rests entirely upon the giant mentioned above. Its members must unite and vote into office driven, principled candidates who will stop the present administration and its actions stone cold. These new representatives must reform entitlement programs into self sustaining entities no matter who complains. Lower benefits and a later retirement age are better than default and no benefits. They have to blockade the out of control spending and address the massive deficit. Everything from replacing sand on California beaches to entire cabinet departments must be eliminated.

Cutting federal spending has to be the first step. Reagan and Bush 43 both lowered taxes but did not reign in spending. The “starving the monster” theory did not work – it just borrowed to sustain itself. The monster must be domesticated or dismembered. Fresh leadership is needed in Congress to halt the fiscal bleeding. Such action will translate into knowledge that taxes will not have to rise, draconian mandates and regulation will be forestalled, and the debt danger will be addressed. Consumers and business will gain confidence knowing that impending financial disaster has been averted. Private investment will increase, hiring will go up, and the unemployment rate will sink.

The next seven months may be the last, best chance for America as we know it and wish it to stay; that shining city on a hill, the destination, opportunity, and home of all those who “yearn to breathe free.”

Washington State Attorney General Rob McKenna represents the majority of American people who understand that a society supported by burgeoning entitlements is unsustainable. Our Constitution was written to protect us from the Government – not to allow it to control our private, personal decisions. His joining with 13 other State Attorneys General to challenge the constitutionality of ObamaCare is much appreciated.

Present US national debt combined with the unfunded liabilities of Social Security, Medicare, and Medicaid is approximately $117 TRILLION – BEFORE adding the monstrous health care program. Over the years the federal government has piled up promises to pay that amount with no visible means of support to do so.

Just for comparative purposes, that much money would make 336 STACKS of $100 bills each of which would reach the International Space Station from the earth’s surface. A baby born today owes about $381,107 with its first breath as does every other living American. Democrats like to borrow from future generations or dragoon money from those who earn it and give it to those who don’t. Republicans often do the same in support of earmarks, subsidies, and anything they think will buy a few votes. Who will be holding the debt sack when the music stops and China quits funding our shortfalls? Hint: Many of them are not born yet.

The supporters of Health Care Reform insisted the program was deficit neutral. However if one were to take a sensible look at the broken promises of Social Security, Medicare, and Medicaid costs over time, a reasonable person could only expect the same future cost explosion with health care. The duplicity of double counting Medicare “savings” and separating out the $209 Billion “Doc Fix” are obvious to all who wish to see. Larding the bill with bribes and payoffs like the “Cornhusker Kickback” and “Louisiana Purchase” to assure passage stinks to high heaven.

My beloved little Goddaughter will be paying for this myopic foolishness long after we who squandered her future are gone. Our elected officials are present time oriented and refuse to consider history or contemplate the future. They exist in the here and now; caring only about what makes them feel good in the moment and what it takes to cling to office. Playing Robin Hood with other peoples’ money provides instant gratification along with votes. They care not a whit about the damage their inane spending and massive borrowing will eventually lead to.

Folks who choose to believe in this massive “entitlement” nonsense and support it are welcome to do so. However, please remember that the proverbial road to Hades is paved with good intentions. The European Union is desperately dealing with a half dozen member states that are drowning in debt largely caused by excessive entitlement spending. Present US programs are growing exponentially at the same time the number of workers paying in is shrinking relative to the recipient burden. Now we are told that 30 million more people can be insured basically at taxpayers’ expense and it will not increase the deficit? Perhaps the Tooth fairy may step in to assist.

President Obama has just informed an Indonesian interviewer that the massive health care entitlement, which will add trillions more to our deficit over time is: “the most important domestic agenda” in America. American unemployment is nearly 10%. Our national debt is at $13 Trillion and over $3 Trillion is being added in 2009 and 2010. Social Security, Medicare, and Medicaid are basically bankrupt. President Obama has just added yet one more monstrous entitlement to those we already cannot sustain.

The Health Care debate consumed over a year of the administration’s and Congress’ time. The Senate Bill and the House Reconciliation Bill will soon be signed into law. So far 13 State Attorneys General are suing the Federal Government to prevent the mandates included in the Bill from taking effect in their states. These actions will gum up the court system and embroil the legislation in protracted legal battles for months or years.

This massive misallocation of legislative resources is keeping the government and the economy at near paralysis. The American people are spending inordinate amounts of time and money fighting this law. Businesses are frozen in fear of higher taxes and penalties included in the Bill. For instance, Caterpillar just charged $100 Million against earnings for the additional costs on them alone. Investors are deeply concerned about threatened higher taxes on capital gains, rental, and dividend income. Without confident investors, jobs do not get created.

There is only one type of person who could seriously believe that health care in this fragile economy is the most important legislative goal. That person must have absolutely no business experience or understanding of basic economic principles. I give you “Exhibit 1” – President Obama. His experience is as a professor, lawyer, community organizer, and legislator. He has never met a payroll, exercised executive responsibilities, nor faced the challenges and demands of a businessman or investor. His sincere but erroneous belief is that wealth must be forcibly taken from those who produce it and given to those who do not. He obviously slept through any economics classes he was forced to take, or Paul Krugman was the instructor. When you say: “Adam Smith”, Obama thinks of that squishy liberal Congressman from Washington State – not the man who wrote Wealth of Nations.

As the economy continues its unstable drift into an unknown future, Obama and his gang of czars and sycophants continue to tax, spend, and borrow in their futile and dangerous quest for wealth redistribution instead of wealth creation. These actions bleed ambition from the entrepreneurial and creative risk takers while breeding dependency into additional sectors of the population.

Bill Clinton was travelling a similar path until 1994. The American people awoke and peacefully rebelled. A sea change in Congress forced him into a saner direction. Barack Obama needs a similar wake-up call. He shall receive it this coming November.